Most people are not surprised to hear that a golf course view is a marketable amenity for which buyers pay more. Did you find yourself saying, “Well, of course”? Carol Vergara and I were surprised a few years ago when we were asked to argue the market reaction to golf course views.

The data we researched included properties surrounding a specific golf course and other courses in Rockland and Westchester County. In every MLS listing researched of a property viewing a golf course it was described in the marketing remarks as an amenity. When local real estate brokers in those areas were surveyed all considered a golf course location positive in terms of view and prestige, even if homeowners had to yell “fore” in their backyards.

We also analyzed sales over a 4 year period in a townhouse development built around a golf course and marketed from 2005 through 2009. Within that complex, similar units, contracted at the same time, with and without a golf course view were analyzed. Based on that analysis, the premium paid for a golf course view ranged from 5.9% to 6.85% depending on the contract year. The sales manager for the project confirmed these results. Throughout the marketing of the project, regardless of changing market conditions, buyers paid more for units with a view of the golf course.

Since it is difficult to find a significant number of properties that are comparable except for the view, the data is old. We frequently look at our market to ensure that the difference remains.

What does this mean on an appraisal in our market? While it is important to remember that there is no hard and fast rule, it could mean that a property with a golf course view could be worth ± 5% more than a comparable property (please see our blog post “The Search for Perfect Comparables”) without a golf course view.

So, as a homeowner or real estate professional, from your experience or perspective what is your thinking? How much do you think a golf course view is worth?

]]>https://mfappraisal.wordpress.com/2013/01/30/how-much-is-a-golf-course-view-worth/feed/1mfappraisalGolf Course View1Good News Herehttps://mfappraisal.wordpress.com/2011/02/02/good-news-here/
https://mfappraisal.wordpress.com/2011/02/02/good-news-here/#respondWed, 02 Feb 2011 21:11:45 +0000http://mfappraisal.wordpress.com/?p=105So, it has been a long time since I posted to this blog! Mea culpa, mea culpa! My absence has been for very good reasons…my appraisal business has been busy, thanks, in no small part to referrals from many of you. Thank you!

Carol Vergara and I have started Vergara Fox & Associates, LLC. We offer tax representation to homeowners. Both Carol and I are experienced tax representatives and are excited about teaming up!

Both Carol and I continue to maintain our appraisal businesses and for clarity are keeping our tax representation and our appraisal businesses separate.

Wishing you well during this snowy Winter!

]]>https://mfappraisal.wordpress.com/2011/02/02/good-news-here/feed/0mfappraisalDisagree with the Board of Assessment Review about your tax grievance complaint? A Small Claims Assessment Review could be your next step.https://mfappraisal.wordpress.com/2010/07/06/disagree-with-the-board-of-assessment-review-about-your-tax-grievance-complaint-a-small-claims-assessment-review-could-be-your-next-step/
https://mfappraisal.wordpress.com/2010/07/06/disagree-with-the-board-of-assessment-review-about-your-tax-grievance-complaint-a-small-claims-assessment-review-could-be-your-next-step/#respondTue, 06 Jul 2010 10:48:56 +0000http://mfappraisal.wordpress.com/?p=89So you thought you were done…you learned all of the tax appeal vocabulary and process, got everything in on time, you in a sense “ran the good race.” Now, you find out that you were denied a reduction in your property assessment or disagree with the reduction given your property by the BAR. What is a homeowner to do? Ask yourself…do I have a strong case? Do I have the time/energy to continue? Do I feel qualified to represent myself? If you answered yes read on for an explanation of the next steps in the process.

If you are dissatisfied with the decision of the BAR, you may seek judicial review by beginning a tax certiorari proceeding in New York State Supreme Court, pursuant to Article 7 of the Real Property Tax Law, or by beginning a proceeding for Small Claims Assessment Review (SCAR).

According to the New York State Unified Court System, “a Small Claims Assessment Review (SCAR) is a less costly and more informal alternative to a formal Tax Certiorari proceeding, which can be time consuming and expensive.”

SCAR was developed to provide homeowners with a simple way to challenge their assessments. It is only available to owner-occupants of one, two or three family dwellings which are used exclusively for residential purposes, or the owners of vacant land that is not of sufficient size to contain a one, two or three family dwelling.

To begin the process you must file an original SCAR petition (form RPTL 730 found on the New York State Office of Real Property Tax Services website http://www.orps.state.ny.us/) and two copies with the County Clerk within 30 days of the publishing of the final roll. You must also file or deliver by certified mail, a copy of the SCAR Petition within ten (10) days of having filed with the County Clerk to the clerk of the assessing jurisdiction, and by regular mail to the assessor of the district, the clerk of the school district, and the county treasurer.

After the SCAR petition has been filed you will be given a hearing date with a hearing officer. Hearing officers are generally individuals with some law or real estate background. They could be lawyers, brokers, appraisers, or ex-assessors. You will meet with the hearing officer, the town assessor and sometimes the town attorney. You may bring the appraiser or other witnesses to support your case. Both sides present their arguments and the hearing officer decides the case.

For properties having an equalized value (see our post “Over assessed, Confused, Should You Grieve Your Taxes…for further explanation) of $450,000 or less, the reduction you can request in the SCAR proceeding is limited by the reduction you requested in the grievance before the BAR. If the equalized value of the property exceeds $450,000, the reduction may not exceed 25% of the assessment, or the reduction sought in the grievance before the BAR.

The decision of the SCAR hearing can be for the value claimed by the town, the value claimed by you or something in between. This is the final stage of the process and whatever the decision, it stands for the roll year. You have no other recourse to argue your assessment.

Should you win any reduction in value, you cannot file again the following year. If you are not granted any reduction, there is no filing restriction.

The above information can be substantiated by, “What to Do if you Disagree with Your Assessment Section 3: Small Claims Assessment Review” published by the New York State Office of Real Property Services. The New York State Unified Court System website can also substantiate the information above.

I have done several appraisals this spring to help sellers decide whether 1) to reduce their asking price or 2) take what they considered low offers. Rarely am I asked to do pre-listing appraisals which could save sellers time, energy, and money. Recently, I appraised a beautifully restored house that had been on the market for many months and had received-what seemed to them-only low offers. The homeowners were confused and frustrated, and, at that point, they were committed to selling. With the information from the appraisal they understood the situation in their specific market much better and were able to look at the situation more realistically. This is what a good appraisal does. The homeowners thanked me for my “candor” and accepted an offer.

In my personal experience, selling a house depends upon both timing and mindset…When we sold our house we didn’t have much control over the timing so we, eventually, had to focus on mindset. By mindset I mean the emotional and financial price we were willing to pay to sell our house (no pun intended).

In August of 2007 we put our house on the market with the caveat that we would not sell if we did not get an offer close to our asking price…we were not really “committed sellers” at that point. Our asking price was on the higher end, but we had comparable sales that could justify it. However, it was the beginning of the decline and prices were decreasing and unstable. It was new territory for everyone. Our mindset did not help us. We were the homeowners, spoiled by the boom, thinking that things could be different for us…they were not. We took our house off the market after 6 months, having only received one very low offer.

With a changed mindset and no caveat, we put the house back on the market 6 months later with an 11% reduction in price. We accepted an offer-$10,000 lower than asking-two weeks later. So, we learned that selling a house is really a mindset, one in which we needed to be willing to base decisions in reality and facts, not in emotion and hopes. I feel like Joe Friday from Dragnet…”Just the facts, ma’am.” I don’t totally discount the emotional piece in the home-selling process…as we found out, hopes and emotions just need to be tempered by reality.

A pre-listing appraisal can help sellers base their decisions in the reality of their particular real estate market…when they are ready to face it. In most cases it would be helpful to get “the facts” at the beginning of the selling process. However, when you are the seller it is much easier to face reality in an up market…

]]>https://mfappraisal.wordpress.com/2010/06/03/committed-to-selling-your-house-a-pre-listing-appraisal-can-help/feed/0mfappraisalThings to know when Grieving Your Property Taxeshttps://mfappraisal.wordpress.com/2010/05/07/things-to-know-when-grieving-your-property-taxes/
https://mfappraisal.wordpress.com/2010/05/07/things-to-know-when-grieving-your-property-taxes/#respondFri, 07 May 2010 01:10:38 +0000http://mfappraisal.wordpress.com/?p=59Most of us are grieving our taxes in the sense of sorrow and disbelief…but do you have a case to literally grieve your taxes? A friend of mine received a flyer in the mail from a company that offered to represent him in grieving his taxes. Saving money sounded good to him-as it does to most of us-so he signed some papers and the company did the rest. He saved a few hundred dollars on his property taxes. We talked after the fact and my friend found out that he had a stronger case than was negotiated….he could have saved more. The company did not notify him of anything, they just settled.

I don’t know the intention of the company that assisted my friend. I am not saying that everyone sending out fliers is unethical. There are many ethical and professional people who help homeowners negotiate the process. I do think that people should get recommendations before they choose professionals to assist them! And by professionals I mean appraisers, and/or tax representatives (should you choose that route). I also think that whomever you use should be local and know the market.

I would have liked to educate my friend about the tax grievance process as it was designed to be user friendly. That being said it is fairly confusing to many. I am going to give you the advice that I would have liked to have given my friend. Here is a list of things that I think people should know before and while they grieve their property taxes.

1. Can my assessment go up as a result of a tax grievance?

Your property assessment can never go up as a result of grieving your taxes. It is against the law.

2. How do I know if I am over assessed?

If your municipality assesses property at 100% then what you see on your tax bill for full/fair market value is what the assessor estimates your house should sell for (if none of the parties are under stress). If that number is what you believe that you could sell your property for, then you are probably not over assessed. Bronxville, the Town of Rye, and Pelham in Westchester County assess property at 100%.

The other municipalities in Westchester assess property at a percentage of market value, which can be confusing. So, first you need to know the assessed full/fair market value. Do not use the full/fair market value found on your tax bill. Please read our post from February 26, 2010, “Over Assessed? Confused? Should You Grieve Your Taxes?” to help you determine if you are over assessed.

3. Do I really have a case?

Determining if you have a strong tax grievance case is important. You don’t want to spend more money to grieve your taxes than what you would save from the process. When grieving your property taxes you argue that the assessor’s estimate of your property’s value is greater than the property’s actual market value. There is a presumption that the assessment made by the assessor is correct. The burden of proof is on you. Also, the assessor does not have to be right on the dollar. The courts have supported the concept of “rough equity” which by common practice in this area is about 5%. So, if the “actual” market value of your property is within about 5% of the assessed market value, it is probably not considered over assessed.

Since property valuation is somewhat subjective you want to have a strong case. In order to have a strong case the difference between the assessed market value and the “actual” value of your property should be at least 10%. If the “actual” market value of your property is 90% or less of the assessed market value, then your property is probably over assessed.

4. How do I establish “proof” of the value of my property?

In grieving your assessment-formally or informally-you are asking that your assessment be modified. The burden of proving that you are over assessed is on you. So, you need solid “proof” of the market value of your property. To establish the value of your property, the following information may be useful:

A credible appraisal of your property

Purchase price of the property, if recent

Offering price of your property, if recently offered for sale

Cost of construction, if recently built

Comparable sales

If you have any of the above to establish valuation of your property, contact your assessor’s office to ensure that your proof is acceptable in terms of type and age of the document.

5. What options do I have when grieving my taxes?

A. Many municipalities allow homeowners to informally appeal their assessments at any time, except for the formal grievance period. Contact your assessor’s office to see what the policies are for your municipality.

Appealing informally typically involves having a conversation with the assessor about your property. Make sure that the assessor has an accurate description of your property-in terms of square footage, room count, etc.

Even though this is an informal appeal it is your responsibility to “prove” that you are over assessed. See item 4 for ways to establish the value of your property. If the assessor agrees that the property is over assessed, the change will be made to the next tentative roll. If, after meeting with your assessor, you are still dissatisfied, you have the right to file a formal complaint during the formal grievance period.

B. To formally grieve your property taxes fill out form RP-524 from the New York State Office of Real Property Tax Services (the form and the instructions are available on their Website http://www.orps.state.ny.us/). Submit it with “proof” of the market value of your property to the assessor’s office or the BAR during the formal grievance period for your municipality. Again, see item 4 for ways to establish the value of your property. You can only grieve your property taxes formally during the formal tax grievance period. Contact the assessor’s office for the dates for your municipality.

6. What are some important dates and vocabulary that I should know?

Tentative Roll–The “roll” contains the proposed assessed values for each property. The “tentative roll” comes out the first day of the “grievance period.”

Grievance Period–This is the period within which you can file a formal complaint. If you miss this period you cannot formally grieve your taxes that year.

Grievance Day–This is the last day that you may file a formal complaint for the year. This is the last day of the “grievance period.” Grievance day is the date of the public session of the Board of Assessment Review (BAR).

Call your assessor’s office or check the New York State Office of Real Property Services Website to find out where these important dates fall on the calendar for your municipality. http://www.orps.state.ny.us/

7. Who makes the decision about my grievance?

The Board of Assessment Review (BAR) is a three-five member board comprised of local citizens who have “at least a general knowledge of property values” in the community.

8. What recourse do I have if I disagree?

If you are dissatisfied with the decision of the BAR, you may seek judicial review by commencing a tax certiorari proceeding in New York State Supreme Court, pursuant to Article 7 of the Real Property Tax Law, or by commencing a proceeding for Small Claims Assessment Review (SCAR). Both must be filed within 30 days of the final assessment roll.

Much of this information was gleaned from my experience as well as research into the tax grievance process. I used several publications from the New York State Office of Real Property Services. Because two heads are better than one I had several conversations with Carol Vergara of Carol Vergara & Associates about this post.

]]>https://mfappraisal.wordpress.com/2010/05/07/things-to-know-when-grieving-your-property-taxes/feed/0mfappraisalMeasuring Square Footage of a Single Family Home (a Method to the Madness)https://mfappraisal.wordpress.com/2010/04/02/measuring-square-footage-of-a-single-family-home-a-method-to-the-madness/
https://mfappraisal.wordpress.com/2010/04/02/measuring-square-footage-of-a-single-family-home-a-method-to-the-madness/#commentsFri, 02 Apr 2010 00:26:56 +0000http://mfappraisal.wordpress.com/?p=45I have been asked by several people to describe how appraisers measure square footage. This is an important issue during the residential real estate appraisal process as appraisers use square footage as a significant factor when choosing comparable sales.

There is a guideline-ANSI Z765-2003-used by myself and many appraisers. This guideline, while not a regulation, is a part of the Appraisal Institute curriculum and recognized by many federal agencies. It was created by the American National Standards Institute (ANSI) at the request of the National Association of Home Builders in 1996 and updated in 2003. The standard describes measuring and calculation procedures used to determine the square footage of detached and attached single-family homes. The Appraisal Institute curriculum also states that appraisers should be aware of how measuring square footage is done in their area…and, to make it all more interesting, some of the bigger players in the market place (FHA, VA, Fannie Mae, etc.) have their own standards.

In the ANSI standard, square footage is calculated by measuring the outside perimeter of the structure and includes only finished, habitable, above-grade living space. ANSI defines some important vocabulary in the following ways:

Finished Area

An enclosed area in a house that is suitable for year-round use, embodying walls, floors, and ceilings similar to the rest of the house. If the area is not entirely finished or not connected to the house by a finished area then it is not included in the finished square footage.

The area must have ceiling height of at least 7 feet, except under obstructions where the height may be 6 feet 4 inches. If a room’s ceiling is sloped, at least one-half of the finished square footage in that room must have a vertical ceiling height of at least 7 feet. The floor located under sloping ceilings must have a clearance of at least 5 feet…..no portion of the finished area that has a height of less than 5 feet may be included in finished square footage.

Grade

The ground level at the perimeter of the exterior finished surface of the house.

Above grade finished area is the sum of finished areas on levels that are entirely above grade. Below grade finished area is the sum of finished areas on levels that are wholly or partly below grade.

Below grade areas can add greatly to the value of a house and are included when determining value.

Areas included in square footage

-Areas of the house that are above grade and entirely finished

-Area of stair treads and the landings proceeding to the floor below is included in the finished area of the floor from which the stairs descend

Area not included in square footage

-Any below-grade areas, even if only one part of the area is below grade

-Openings to the floor below (i.e. for two-story foyers, great rooms, etc. the second floor open space is not counted)

]]>https://mfappraisal.wordpress.com/2010/04/02/measuring-square-footage-of-a-single-family-home-a-method-to-the-madness/feed/2mfappraisalOver assessed? Confused? Should You Grieve Your Taxes? Consumer Be Aware.https://mfappraisal.wordpress.com/2010/02/26/over-assessed-confused-should-you-grieve-your-taxes-consumer-be-aware/
https://mfappraisal.wordpress.com/2010/02/26/over-assessed-confused-should-you-grieve-your-taxes-consumer-be-aware/#respondFri, 26 Feb 2010 02:23:18 +0000http://mfappraisal.wordpress.com/?p=37In our tax grievance appraisal work we help people navigate the property tax system. It can be a confusing process…one indeed to “grieve” over (pun intended).

Our purpose here: to clarify how to determine if you are over assessed when your municipality assesses at a percentage of market value.

Also included:

1) Clarification of tax vocabulary from your tax bill

2) A method of determining the fair/full market value of your property actually used by your municipality.

1) Clarification of Property Tax Vocabulary

Fair/Full Market Value (Equalized Value)

This is the assessment of value assigned to your property. It should be the price a buyer would pay for a property in its present condition and the price a seller would sell that property for if neither party were under stress to do so. Caution! Do not use the full market value amount found on your tax bill to determine if you are over assessed. This amount may not be the full market value that is used by the municipality.For more information read on.

Assessed Value of your property

Most municipalities in Westchester assess at a percentage of market value (the uniform percentage of value). This means that if the assessor estimates that the full market value of your property is $300,000 and your municipality assesses residential property at 50% of market value, your assessed value would be half the full market value or $150,000. The assessed value is the starting point for setting the amount on which your tax is based. At this point, exemptions have not been deducted. The assessed value does not change unless you grieve your taxes or make improvements to your home.

Uniform Percentage of Value

Assessments, by law, must be made at the same percentage of market value for all property in the assessing unit. This percentage is known as the Residential Assessment Ratio (RAR) for residential properties and the Equalization Rate (ER) for commercial properties. The RAR is determined by the New York State Office of Real Property Services and changes annually depending on real estate market trends. It is usually available 60 days before the tentative assessment roll is filed. You can obtain your municipalities RAR from the Assessor’s Office. The RAR is an attempt to equalize the tax burden. It is based on the premise that all properties are accurately assessed.

To figure out if your property is over assessed you will need the assessed value of your property from your tax bill and the Residential Assessment Ratio(RAR) which you can obtain from your assessor’s office or the New York State Office of Real Property Services web site. Caution! Most tax bills use theEqualization Rate for commercial properties to perform this calculation and that typically results in a lower fair/full market value. If you don’t use the RAR you could be over assessed and not know it. USE THE RAR!

Divide your assessed value by the RAR. Since the RAR is expressed as a percentage, first convert it to a decimal by dividing by 100. So, if the RAR is 2.50% it becomes .0250. Then divide the assessed value by the RAR.

You are most likely assessed correctly if you believe the figure you calculated to be the accurate market value of your home. If, however, you believe this number to be too high and can prove that it is so, you can file a grievance with the Assessor’s Office.

To give a great lady her due, Carol Vergara of Carol Vergara & Associates contributed to the writing of this post.

]]>https://mfappraisal.wordpress.com/2010/02/26/over-assessed-confused-should-you-grieve-your-taxes-consumer-be-aware/feed/0mfappraisalThe search for the perfect comparables or “comparing apples to apples”https://mfappraisal.wordpress.com/2010/02/05/the-search-for-the-perfect-comparables-or-%e2%80%9ccomparing-apples-to-apples%e2%80%9d/
https://mfappraisal.wordpress.com/2010/02/05/the-search-for-the-perfect-comparables-or-%e2%80%9ccomparing-apples-to-apples%e2%80%9d/#respondFri, 05 Feb 2010 02:52:41 +0000http://mfappraisal.wordpress.com/?p=27I am frequently asked, “What makes a good comp?” In appraising it is important to make sure that your comparables (comps) are similar to the property being appraised (aka subject property). Location should be the first consideration when choosing comparables. Then, comps should be similar to the subject property in terms of sales price, age, gross living area, site (land), location, style, condition, room count, and amenities (i.e., basement, garages, decks, patios, fireplaces, etc.).

For mortgage appraisals, lenders typically require appraisers to use three closed sales and two other listings (these two can be pending and/or active) as comparables. Lenders now require that two of the sales be closed within the last 90 days. The comps should bracket (one on either side with the subject in the middle) the subject property’s major characteristics in terms of sales price, age, and Gross Living Area (GLA).

Example of Lender’s Typical Requirements

Sales price

The lender typically requires that one of the three closed sales be below the subject property’s sales price and at least one other be above its sales price. If at all possible, differences should be no greater than 10%.

Age

The comparables should be built within 10-15 years of the subject property unless it is new construction. New construction should be compared to other properties built within the last 5 years.

Gross Living Area (square footage)

The Gross Living Area of the comps should bracket the subject property’s GLA by no more than 20%.

Further Requirements

Room Count

The room count consists of total number of rooms, number of bedrooms, and number of bathrooms. These are only above-grade rooms and bathrooms are never counted in the total room count. For example, 7, 3, 2.5 means 7 rooms total, 3 bedrooms (counted in total room number), 2.5 baths.

Site

The size of the land parcel of the comps should be similar to the subject property. Utility (usefulness) of the sites should also be similar. For example, if the subject property is a ¼ acre, open and level site, it does not have the same utility as a ¼ acre, sloping and rocky site.

Location

For suburban locations, guidelines state that comps should be less than 1 mile from the subject. In urban locations comp distance should not exceed ½ mile.

Styles

Comparables should be similar in style to the subject property.

One of the closed sale comparables must match the subject property in regards to condition, bathroom count, basement (finished or not, full, partial, none, crawl), central air, garage count, and other amenities.

Of course, these are all guidelines in an ideal world. Value adjustments are made whenever there is a difference between the subject property and the comparables. Whether guidelines can be met or are exceeded, adjustments must be supported within the subject property’s market.

]]>https://mfappraisal.wordpress.com/2010/02/05/the-search-for-the-perfect-comparables-or-%e2%80%9ccomparing-apples-to-apples%e2%80%9d/feed/0mfappraisalIn An Appraisal Cost Does Not Always Equal Valuehttps://mfappraisal.wordpress.com/2010/01/18/in-an-appraisal-cost-does-not-always-equal-value/
https://mfappraisal.wordpress.com/2010/01/18/in-an-appraisal-cost-does-not-always-equal-value/#respondMon, 18 Jan 2010 23:31:50 +0000http://mfappraisal.wordpress.com/?p=15“Isn’t It Ironic…Don’t You Think?” No, this is not a tribute to Alanis Morissette. I was thinking about the home-selling process. When homeowners prepare to sell or refinance their home they often spend a great deal of time and money on aesthetic improvements to make their home more appealing…and rightly so. The irony is that when they move into the appraisal process those aesthetic improvements often don’t add a great deal to the value of a house in a “good marketable condition.”

No one wants to hear that cost does not always equal value. The cost of renovations and the value that they add to a home can vary greatly. There are certain renovations or upgrades that can add significant value to a home and can help sell a home faster. Anywhere from 40% – 80% may be recouped, depending on the project. In my experience, the renovations or updates that add the most value to a home are new kitchens, renovated or new bathrooms, finished basements and increasing the square footage of a home. Aesthetic changes such as painting walls, changing locksets from chrome to brass, installing crown moldings in the great room, etc., may improve the appearance of a house, but, they rarely add value to a house already in a “good marketable condition” for the appraisal.

As I develop an opinion on the value of a home, it is, in great part, by comparing it to houses that have recently sold in that market. If a homeowner sinks $100,000 into finishing a basement and I am comparing a sale in that market with a finished basement, I can’t always know the quality of the comparable sale’s finished basement. I don’t have the opportunity to inspect the comparable sale’s finished basement. My information is garnered through the local MLS, various publications, and/or conversations with local real estate professionals.

Many times a finished basement is just that, a finished basement, no matter the cost.

]]>https://mfappraisal.wordpress.com/2010/01/18/in-an-appraisal-cost-does-not-always-equal-value/feed/0mfappraisalHello world!https://mfappraisal.wordpress.com/2010/01/12/hello-world/
https://mfappraisal.wordpress.com/2010/01/12/hello-world/#respondTue, 12 Jan 2010 16:08:03 +0000 This is my first post. The purpose of this blog is to answer questions about real estate appraisals and the real estate appraisal process. I want it be a forum for industry professionals and lay people to discuss issues that affect the Westchester and NYC real estate markets. General questions and comments are welcome!